Founders of failed Fresno tech company Bitwise sentenced to federal prison

Former Bitwise CEOs Jake Soberal, Irma Olguin Jr. sentenced to prison


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FRESNO, Calif. (KSEE/KGPE) – The former co-CEOs of the now defunct Bitwise Industries, Jake Soberal and Irma Olguin Jr., were sentenced to years behind bars in federal court in Fresno on Tuesday.

Jake Soberal and Irma Olguin Jr. changed their pleas to guilty in July, in response to the charges of wire fraud and conspiracy to commit wire fraud — agreeing to a deal with federal prosecutors.

Former Bitwise CEOs Jake Soberal and Irma Olguin Jr. take plea deal, walk from court
On Tuesday, Jake Soberal was sentenced to 11 years in federal prison; Irma Olguin Jr. was sentenced to nine years in federal prison. Both will also receive three years of supervised release.

Soberal received a longer sentence because the judge took into account that he was previously a licensed attorney in the State of California. The judge stated that Soberal should have known better.

The sentence handed down to both Jake Soberal and Irma Olguin Jr. was much higher than the five years the defense was asking for, which argued that the pair’s actions were “to help people” and to pay them. However, the sentence was not as high as prosecutors recommended, which was 12 years in federal prison.

Prosecutors argued that the defendants knew exactly what they were doing when they stole over $100 million from investors, giving six-figure salaries to family members and friends.

https://www.kget.com/news/state-news/former-bitwise-ceos-jake-soberal-irma-olguin-jr-sentenced-to-prison/






https://www.fresnobee.com/news/local/article297361574.html

LOCAL Fresno investors lost millions to Bitwise founders. Will they ever see the money again? By Robert Rodriguez Updated December 20, 2024 5:05 PM|

6 Former employees of the defunct Bitwise enterprise attended a plea hearing at the Federal Courthouse in Fresno for Bitwise co-founders Irma Olguin Jr. and Jake Soberal. By Craig Kohlruss READ MORE Bitwise EXPAND ALL

Inside a standing-room-only courtroom, former Bitwise investor Flavia Takahashi-Flores felt a sense of justice when a judge sentenced the company’s co-founders Jake Soberal and Irma Olguin Jr. to prison for bilking millions from investors like her. A federal judge on Tuesday sentenced Soberal to 11 years and Olguin to nine years in prison, plus three years of supervised release.

He also ordered them to pay back $115 million of investors’ money. It’s uncertain how much of the restitution Soberal and Olguin will be able to pay. What is certain is they will start paying it even while in custody. The Bureau of Prisons will garnish an inmates’ commissary, which includes money put there by family and friends as well as income from prison work, at 50% to pay restitution, said a source familiar with the process who asked not to be identified.

After they are released, the U.S. Probation Office uses a formula to determine how much they’ll pay monthly during their three years of supervised release. It’s also possible that, after supervised release, the government would garnish wages and seize tax refunds to continue payment. The debt also can’t be wiped away by bankruptcy
Read more at: https://www.fresnobee.com/news/local/article297361574.html#storylink=cpy





Soberal spoke to the judge first. Wearing a suit, and partially grown beard, he apologized several times, reflecting on his conduct.

“My dishonesty created this pain and suffering,” Soberal said.

He justified his actions as an effort to save the company from its financial failures. He and Olguin said they did not financially benefit from bilking investors.

Serving 11 years will take Soberal away from his three children.

“Your father has sinned and lied, and it is not okay,” Soberal said.

Soberal admitted enjoying the power and influence running Bitwise. Prosecutor Joe Barton used those words against Soberal in his rebuttal. He said Soberal “weaponized” doing good, by preying upon investors.

“He must face the consequences,” Barton said.

Olguin, with fuchsia hair and wearing a pantsuit, also apologized. She sobbed at times, speaking to the judge.

“I’m sorry I betrayed your trust. I’m sorry I broke your heart,” she said.

Olguin called her life — from the fields of Caruthers in poverty, to a celebrated tech CEO — “Hallmark movie” worthy.

She is concerned that her actions may reflect poorly on Mexican-Americans, the queer community, and women.

“I let them all down,” Olguin said. “I fear I dragged them down with me.”

https://gvwire.com/2024/12/17/former-bitwise-ceos-receive-stiff-federal-prison-sentences/#google_vignette